AI potential prompts Melius Research to raise Dell's target price

Melius Research raises PT of cloud and client computing firm Dell Technologies DELL.N to $170 from $148

New PT represents a 22.9% upside to the stock's last close on Friday

Brokerage says Dell's AI server business has long-term potential and the added value from services and storage could become more meaningful

Shares of co marginally down at $138.16 in premarket

Maintains stock rating at "buy"

"We do think that many lower multiple hardware stocks are in the process of re-rating toward mid-teens multiples as AI pushes value not only into semis but also certain hardware companies that help put the technology in action" - brokerage

Average rating from 24 analysts is "buy"; median PT is $142.5 - data compiled by LSEG

As of last close, DELL stock is up 20% YTD